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1) Star Industries computes variances as a basis for evaluating the performance of managers responsible for controlling costs. For several months, the labor quantity variance
1) Star Industries computes variances as a basis for evaluating the performance of managers responsible for controlling costs. For several months, the labor quantity variance has been unfavorable.
A) Briefly explain what could be causing the unfavorable labor quantity variance and indicate what type of corrective action, if any, might be taken.
B) Are ideal standards unethical? Explain briefly.
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